Monday, October 13, 2014

November crude oil closed lower on Monday. The high range close sets the stage for a steady to higher opening when Tuesday's night session begins. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term. If November extends the decline off June's high, the 62% retracement level of the 2009-2011 rally crossing at 80.80 is the next downside target. Closes above the 20 day moving average crossing at 90.64 are needed to confirm that a low has been posted. First resistance is the 10 day moving average crossing at 88.63. Second resistance is the 20 day moving average crossing at 90.64. First support is last Friday's low crossing at 83.15. Second support is the 62% retracement level of the 2009-2011 rally crossing at 80.80.

November Henry natural gas closed higher on Monday as it consolidates some of last week's losses. The high range close sets the stage for a steady to higher opening when Tuesday's session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term. If November extends last week's decline, September's low crossing at 3.812 is the next downside target. Multiple closes above the late August high crossing at 4.163 are needed to confirm an upside breakout of the late summer trading range. Closes below July's low crossing at 3.786 would confirm a downside breakout of the late summer trading range. First resistance is the reaction high crossing at 4.184. Second resistance is the reaction high crossing at 4.487. First support is September's low crossing at 3.812. Second support is July's low crossing at 3.786.

December gold closed higher on Monday as it extends this month's short covering rally. The high range close sets the stage for a steady to higher opening when Tuesday's night session begins trading. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near term. If December extends this month's rally, the 38% retracement level of the July-October decline crossing at 1246.00 is the next upside target. Closes below the 10 day moving average crossing at 1214.20 would confirm that a short term top has been posted. First resistance is the 38% retracement level of the July-October decline crossing at 1246.00 . Second resistance is the 50% retracement level of the July-October decline crossing at 1265.50 . First support is October's low crossing at 1183.30. Second support is monthly support crossing at 1179.40.

December coffee closed lower due to profit taking on Monday. The low range close set the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term. If December extends the rally off September's low, weekly resistance crossing at 24.30 is the next upside target. Closes below the 20 day moving average crossing at 19.79 are needed to confirm that a top has been posted.